Frutarom and Algalo to advance algae-based products
January 4, 2016
erzeliya, Israel-based Frutarom Industries Ltd., one of the world’s 10 largest flavors and specialty natural ingredients companies, has signed an agreement to purchase half of Algalo Industries Ltd., based at Israel’s Kibbutz Ein HaMifratz.
For a total of NIS 10 million (approx. US$ 2.6 million) Frutarom will receive 50% of Algalo’s shares. The investment will lead to building a modern biotechnology facility that will specialize in cultivation, harvesting and processing algae using advanced methods. Frutarom will have exclusive worldwide marketing rights for Algalo’s products.
Algalo has developed a unique and innovative method for the efficient cultivation, harvesting and processing of a wide variety of algae that yield highly active ingredients for use in the food, dietary and clinical nutrition supplements and cosmetics industries, including strong antioxidants, lipids and unique proteins and carotenoids which help in maintaining cardio-vascular health, a strong immune system, and healthy skeletal and bone structure.
Algalo’s activity will join Frutarom’s well-established activity in the field of algae cultivation and production of active ingredients (polysaccharides) currently being used by some the world’s leading cosmetics companies for use in their skin care and protection products.
Ori Yehudai, President and CEO of Frutarom Group, said: “The investment in Algalo is part of a broad strategic move by Frutarom to reinforce its position and standing as a leading and innovative global supplier of natural specialty products and functional food ingredients in the fields of taste and health – which now make up over 75% of Frutarom’s activity. The technology developed by Algalo for cultivating, harvesting and processing algae expands Frutarom’s internal research and development capabilities for producing active ingredients from algae, a field in which we are already active, and provides an innovative platform and an additional growth engine for expanding Frutarom’s diverse product portfolio in the growing field of natural specialty ingredients.”
“Frutarom believes that biotechnology represents the next generation in the development and production of innovative natural ingredients for the industries which it serves, and the Company intends to continue expanding its capabilities in this area by intensifying investment in R&D within its laboratories as well as through additional investments and joint ventures with research institutions, universities and startup companies. Frutarom can contribute (to these ventures) from its experience in applied R&D, its industrial manufacturing and from its global deployment in over 150 countries with sales to more than 20,000 customers including leading global companies in foods and beverages, nutritional supplements, pharmaceuticals and cosmetics,” added Mr. Yehudai.